Retailers encounter a large number of factors which server to reduce their profitability, in particular their gross margin. One non-limiting example of factors which adversely affect profitability, include “sweethearting” where a customer pays for a low value item whilst purchasing a high value item with the collusion of the checkout assistant, or at a self-service checkout terminal. Another non-limiting example is where the layout of a retail unit is such that it is not customer friendly, resulting in poor sales of stock items that would otherwise realise higher sales in an alternative position within the retail unit.
In order to address these issues it is common practice to employ a team of managers to cover all opening hours of a retail unit. This practice is expensive for the retail unit owner and does not address the case where one, or more, of the team of managers is indulging in the fraudulent activity and is therefore not likely to address the fraudulent activity.
Attempts have been made to correlate point-of-sale (POS) terminal outputs with video surveillance footage in order to identify fraudulent activity such as sweethearting, see for example U.S. Pat. No. 7,631,808 B (STOPLIFT, INC). However, these POS-video correlations merely identify fraudulent activity and do not add further value to the retailer, there is no attempt to further increase the gross margin associated with a retail unit by identifying further issues with, for example the retail unit's layout.
Additionally, the prior art solutions identify that a problem has occurred but do not automatically identify the reoccurrence of problem that may be indicative of a failure of a manager to address the issue(s).
Naturally, the cost and complexity of addressing gross margin issues increases with the estate of the retailer, for example a large retailer may divide their estate into regions under regional managers reporting in to an overall manager who reports to the chief executive. The present attempts to identify fraudulent transactions do not address how to escalate notification of problems to the appropriate person within retailer, for example the escalation from a regional manager to a general manager if a problem is seen to be recurrent within a particular region, but not in other regions. Thus, in prior art systems there is no correlation between the nature and occurrence of an issue and its escalation through the retailer's organisational hierarchy.